In China, the world's largest steel producer, the most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) rose 2.4% to 906 yuan (127.78 USD) at the start of the session and ended the day 1.1% higher at 894.50 yuan (126.16 USD) per metric ton.
On the Singapore Exchange, 58% iron ore futures rose 0.43% to 104.75 USD per metric ton and 62% iron ore futures rose 0.44% to 117.73 USD per metric ton.
According to data from SteelRadar, the price of steel sheet was recorded at USD 533 on May 22, continuing the upward trend since May 14.
Rebar prices have also been on an uptrend for some time, closing at USD 515 on May 22.
Market dynamics continue to show the impact of volatility in the futures market on spot trading.
In addition, the real estate market in China, the world's second largest economy, which has been in decline since 2021, is expected to recover with the decision announced on Friday. With this recovery, the steel market, which has been affected by China's real estate recession, is expected to start recovering in other Far Eastern countries.
Steelmakers in India faced challenges due to increased imports from China, which sells finished steel products at lower prices. Metal producers were also hit by higher costs of key steelmaking materials such as coking coal and iron ore during the fourth quarter.
According to data from SteelRadar, 012-32 mm rebar prices have been fluctuating. Prices hovered between USD 611-621 during the week of May 14-22. On May 22, rebar closed at USD 618, down 2.06% compared to the same period last year.
HMS 1 scrap showed a similar picture. Prices were recorded between USD 421-430 during the week of May 14-22. At $429 USD on May 22, scrap was also down by 4.02% y-o-y.
Finally, 62% Fe iron ore has been flat since May. Prices were in the range of 116-117 USD during the week of May 14-22.
With the recovery of the real estate sector in China, iron ore prices are expected to rise and this situation is expected to be similar in other countries.
Moreover, major companies such as JSW Steel and Tata Steel are considering significant investments to expand their capacities to meet the growing demand for steel in India. This demand growth is attributed to increased government spending
ahead of the ongoing national elections, which is fueling growth in manufacturing and construction activity.
In Taiwan, the country's leading steel producer Feng Hsin Steel Co. Ltd. announced this week's product prices.
Rebar prices were unchanged at NTD 19,400 (approx. USD 688.28) per ton, scrap at NTD 10,600 (approx. USD 376.58) and section steel at NTD 26,700 (approx. USD 948.12).
Meanwhile, Japan's H2 scrap prices held steady at USD 365, while US containerized scrap prices decreased from USD 353 to USD 348. Australian iron ore prices rose to 117.3 USD from 116.2 USD. Feng Hsin noted that there were no offers for US scrap shipments last week.
Taiwan's economy grew by 6.31% in the first quarter on the back of strong export momentum. The global steel market remains stable as supply constraints ease and demand increases.
In South Korea, the steel industry is expected to face challenges in the second half of the year due to uncertainties in global markets and the real estate crisis in China. This may lead to lower steel prices and negatively affect industry profitability.
Higher raw material prices are expected to push up domestic steel prices, but weak demand and price competition with Chinese imports may limit the full pass-through.
Data from SteelRadar shows that prices are generally on a downward trend.
SD400, 10mm rebar prices have been on a downward trend for a year now. Prices were recorded between USD 513-527 during the week of May 14- 22. On May 22, they fell by 30.20% to USD 513 compared to the same period last year.
HRC (2.3mm x 4 x 8) prices have been fluctuating between USD 622-646 this week. Closing at 622 USD on May 22, sheet prices are at their lowest level in a year.
Stagnation in China's real estate sector and rising supply are leading to weaker demand for steel. This has led South Korean steel producers to increase their exports, but has put downward pressure on prices.
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